By Greenberg, Gallego, Madden, Uher,                  H.B. No. 2611
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to electronic reporting of certain political contributions
 1-3     and political expenditures.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 254.036, Election Code, is amended to
 1-6     read as follows:
 1-7           Sec. 254.036.  FORM OF REPORT; AFFIDAVIT; MAILING OF FORMS.
 1-8     (a)  Each report filed under this chapter with an authority other
 1-9     than the commission must be on a form prescribed by the commission
1-10     and must be written in black ink or typed with black typewriter
1-11     ribbon unless the report is a computer printout.  If the report is
1-12     a computer printout, the printout must conform to the same format
1-13     and paper size as the form prescribed by the commission.
1-14           (b)  Except as provided by Subsection (c), (d), (e), (f), or
1-15     (g), each report filed under this chapter with the commission must
1-16     be filed by computer diskette, modem, or other means of electronic
1-17     transfer, using computer software provided by the commission or
1-18     computer software that meets commission specifications for a
1-19     standard file format.
1-20           (c)  A candidate, officeholder, or political committee that
1-21     is required to file reports with the commission may file reports
1-22     that comply with Subsection (a) if the candidate, officeholder, or
1-23     campaign treasurer of the committee files with the commission an
1-24     affidavit stating that the candidate, officeholder, or committee,
1-25     an agent of the candidate, officeholder, or committee, or a person
 2-1     with whom the candidate, officeholder, or committee contracts does
 2-2     not use computer equipment to keep records of political
 2-3     contributions, political expenditures, or persons making political
 2-4     contributions to the candidate, officeholder, or committee.  An
 2-5     affidavit under this subsection must be filed with each report
 2-6     filed under Subsection (a).  The affidavit must include a statement
 2-7     that the candidate, officeholder, or political committee
 2-8     understands that if the candidate, officeholder, or committee, a
 2-9     consultant of the candidate, officeholder, or committee, or a
2-10     person with whom the candidate, officeholder, or committee
2-11     contracts uses computer equipment for a purpose described by this
2-12     subsection, the candidate, officeholder, or committee is required
2-13     to file reports under Subsection (b).
2-14           (d)  A candidate, officeholder, or political committee that
2-15     is required to file reports with the commission, other than a
2-16     candidate for or holder of a statewide office or a specific-purpose
2-17     committee for supporting or opposing such a candidate or assisting
2-18     such an officeholder, may file reports that comply with Subsection
2-19     (a) if the candidate or committee does not accept political
2-20     contributions that in the aggregate exceed $20,000 or make
2-21     political expenditures that in the aggregate exceed $20,000 in a
2-22     calendar year.  A candidate, officeholder, or political committee
2-23     that exceeds $20,000 in political contributions or political
2-24     expenditures in a calendar year shall file reports as required by
2-25     Subsection (b) for:
2-26                 (1)  any reporting period during the calendar year in
2-27     which the limit prescribed by this subsection is exceeded, other
 3-1     than a reporting period that has ended on the date the limit is
 3-2     exceeded; and
 3-3                 (2)  each reporting period during a calendar year
 3-4     subsequent to the calendar year in which the limit is exceeded.
 3-5           (e)  A candidate for an office described by Section
 3-6     252.005(5) or a specific-purpose committee for supporting or
 3-7     opposing only candidates for an office described by Section
 3-8     252.005(5) or a measure described by Section 252.007(5) may file
 3-9     reports that comply with Subsection (a).
3-10           (f)  An individual required to file a report with the
3-11     commission in connection with a direct campaign expenditure to
3-12     which Section 253.062 applies may file a report that complies with
3-13     Subsection (a).
3-14           (g)  A person required to file a report with the commission
3-15     in  connection with the office of district judge, district
3-16     attorney, or judge of a multicounty statutory county court may file
3-17     reports that comply with Subsection (a).
3-18           (h)  Each report filed under this chapter that is not filed
3-19     by electronic transfer must be accompanied by an affidavit executed
3-20     by the person required to file the report.  The affidavit must
3-21     contain the statement:  "I swear, or affirm, under penalty of
3-22     perjury, that the accompanying report is true and correct and
3-23     includes all information required to be reported by me under Title
3-24     15, Election Code."  Each report filed under this chapter by
3-25     electronic transfer must be under oath by the person required to
3-26     file the report and must contain, in compliance with commission
3-27     specifications, the digitized signature of the person required to
 4-1     file the report.  A report filed under this chapter is considered
 4-2     to be under oath by the person required to file the report, and the
 4-3     person is subject to prosecution under Chapter 37, Penal Code,
 4-4     regardless of the absence of or a defect in the affidavit.
 4-5           (i) [(c)]  As part of the notification required by Section
 4-6     251.033, the commission shall mail the appropriate forms to each
 4-7     person required to file a report with the commission during that
 4-8     reporting period.
 4-9           (j) [(d)]  The commission shall prescribe forms for purposes
4-10     of legislative caucus reports under Section 254.0311 that are
4-11     separate and distinct from forms for other reports under this
4-12     chapter.
4-13           (k) [(e)  A report filed under this chapter is considered to
4-14     be under oath by the person required to file the report regardless
4-15     of the absence of or defect in the affidavit of verification,
4-16     including a signature.]
4-17           [(f)  A person required to file a report under this chapter
4-18     is subject to prosecution under Chapter 37, Penal  Code, regardless
4-19     of the absence of or defect in the affidavit of verification.]
4-20           [(g)]  This section applies to a report that is filed
4-21     electronically or otherwise.
4-22           SECTION 2.  Subchapter B, Chapter 254, Election Code, is
4-23     amended by adding Sections 254.0361 and 254.0362 to read as
4-24     follows:
4-25           Sec. 254.0361.  REQUIREMENTS FOR ELECTRONIC FILING SOFTWARE.
4-26     (a)  Computer software provided or approved by the commission for
4-27     use under Section 254.036(b) must:
 5-1                 (1)  use a standardized format for the entry of names,
 5-2     addresses, and zip codes;
 5-3                 (2)  provide for secure and encoded transmission of
 5-4     data from the computer of a person filing a report to the computers
 5-5     used by the commission;
 5-6                 (3)  be capable of being used by a person with basic
 5-7     computing skills who uses a computer that uses a Windows operating
 5-8     system, Macintosh operating system, or another operating system
 5-9     that the commission determines is as popular as those systems for
5-10     use with personal computers; and
5-11                 (4)  permit a person using a computer to prepare a
5-12     report or to retrieve information from a report to import
5-13     information to the report from a variety of computer software
5-14     applications that meet commission specifications for a standard
5-15     file format or export information from the report to a variety of
5-16     computer software applications that meet commission specifications
5-17     for a standard file format without the need to reenter information.
5-18           (b)  Before determining the specifications for computer
5-19     software developed, purchased, or licensed for use under Section
5-20     254.036, the commission shall conduct at least one public hearing
5-21     to discuss the specifications.  For at least 10 days following the
5-22     hearing, the commission shall accept public comments concerning the
5-23     software specifications.
5-24           Sec. 254.0362.  USE OF PUBLICLY ACCESSIBLE COMPUTER TERMINAL
5-25     FOR PREPARATION OF REPORTS.  (a)  Except as provided by Subsection
5-26     (d), a person who is required to file reports under this chapter
5-27     may use a publicly accessible computer terminal that has Internet
 6-1     access and web browser software to prepare the reports.
 6-2           (b)  A public entity may prescribe reasonable restrictions on
 6-3     the use of a publicly accessible computer terminal for preparation
 6-4     of reports under this chapter, except that a public entity may not
 6-5     prohibit a person from using a computer terminal for preparation of
 6-6     reports during the public entity's regular business hours if the
 6-7     person requests to use the computer terminal less than 48 hours
 6-8     before a reporting deadline to which the person is subject.
 6-9           (c)  This section does not require a public entity to provide
6-10     a person with consumable materials, including paper and computer
6-11     diskettes, in conjunction with the use of a publicly accessible
6-12     computer terminal.
6-13           (d)  An officeholder may not use a computer issued to the
6-14     officeholder for official use to prepare a report under this title.
6-15           (e)  In this section:
6-16                 (1)  "Public entity" means a state agency, city,
6-17     county, or independent school district.
6-18                 (2)  "Publicly accessible computer terminal" means a
6-19     computer terminal that is normally available for use by members of
6-20     the public and that is owned by a state agency, an independent
6-21     school district, or a public library operated by a city or county.
6-22           SECTION 3.  Subchapter B, Chapter 254, Election Code, is
6-23     amended by adding Sections 254.0401 and 254.0402 to read as
6-24     follows:
6-25           Sec. 254.0401.  AVAILABILITY OF ELECTRONIC REPORTS ON
6-26     INTERNET.  (a)  The commission shall make each report filed with
6-27     the commission under Section 254.036(b) available to the public on
 7-1     the Internet not later than the second business day after the date
 7-2     the report is filed.
 7-3           (b)  The access allowed by this section to reports is in
 7-4     addition to the public's access to the information through other
 7-5     electronic or print distribution of the information.
 7-6           (c)  Before making a report filed under Section 254.036(b)
 7-7     available on the Internet, the commission shall remove each
 7-8     portion, other than city, state, and zip code, of the address of a
 7-9     person listed as having made a political contribution to the person
7-10     filing the report.  The address information removed must remain
7-11     available on the report maintained in the commission's office but
7-12     may not be available electronically at that office.
7-13           Sec. 254.0402.  PUBLIC INSPECTION OF REPORTS.  (a)
7-14     Notwithstanding Section 552.222(a), Government Code, the authority
7-15     with whom a report is filed under this chapter may not require a
7-16     person examining the report to provide any information or
7-17     identification.
7-18           (b)  The commission shall make information from reports filed
7-19     with the commission under Section 254.036(b) available by
7-20     electronic means, including:
7-21                 (1)  providing access to computer terminals at the
7-22     commission's office;
7-23                 (2)  providing information on computer diskette for
7-24     purchase at a reasonable cost; and
7-25                 (3)  providing modem or other electronic access to the
7-26     information.
7-27           SECTION 4.  Section 254.041(a), Election Code, is amended to
 8-1     read as follows:
 8-2           (a)  A person who is required by this chapter to file a
 8-3     report commits an offense if the person knowingly fails:
 8-4                 (1)  to file the report on time; [or]
 8-5                 (2)  to file a report by computer diskette, modem, or
 8-6     other means of electronic transfer, if the person is required to
 8-7     file reports that comply with Section 254.036(b); or
 8-8                 (3)  to include in the report information that is
 8-9     required by this title to be included.
8-10           SECTION 5.  This Act takes effect September 1, 1999.
8-11           SECTION 6.  (a)  Section 254.036, Election Code, as amended
8-12     by this Act, applies only to a report required to be filed under
8-13     Chapter 254, Election Code, on or after January 1, 2000.  A report
8-14     required to be filed under Chapter 254, Election Code, before
8-15     January 1, 2000, may be filed in compliance with Section 254.036,
8-16     Election Code, as that section existed before amendment by this
8-17     Act, and the former law is continued in effect for that purpose.
8-18           (b)  Notwithstanding Section 254.036, Election Code, as
8-19     amended by this Act, a person required to file a report under
8-20     Chapter 254, Election Code, that complies with Section 254.036(b),
8-21     Election Code, as amended by this Act, and that is required to be
8-22     filed on or after January 1, 2000, and before July 1, 2000, may
8-23     file a report that complies with Section 254.036(a), Election Code,
8-24     as amended by this Act, unless, not later than January 1, 2000:
8-25                 (1)  the Texas Ethics Commission has developed,
8-26     purchased, or obtained a license to use computer software that
8-27     complies with Section 254.0361, Election Code, as added by this
 9-1     Act, and that permits a person to electronically file a report
 9-2     under Chapter 254, Election Code, as required by Section 254.036,
 9-3     Election Code, as amended by this Act, by using a publicly
 9-4     accessible computer terminal, as defined by Section 254.0362,
 9-5     Election Code, as added by this Act; and
 9-6                 (2)  the commission has determined that the computer
 9-7     software has been sufficiently tested and demonstrated to be
 9-8     reliable when used with a publicly accessible computer terminal.
 9-9           (c)  Notwithstanding Section 254.036, Election Code, as
9-10     amended by this Act, a person required to file a report under
9-11     Chapter 254, Election Code, that complies with Section 254.036(b),
9-12     Election Code, as amended by this Act, and that is required to be
9-13     filed on or after July 1, 2000, and before January 1, 2001,  may
9-14     file reports that comply with Section 254.036(a), Election Code, as
9-15     amended by this Act, unless, not later than July 1, 2000:
9-16                 (1)  the Texas Ethics Commission has developed,
9-17     purchased, or obtained a license to use computer software that
9-18     complies with Section 254.0361, Election Code, as added by this
9-19     Act, and that permits a person to electronically file a report
9-20     under Chapter 254, Election Code, as required by Section 254.036,
9-21     Election Code, as amended by this Act, by using a publicly
9-22     accessible computer terminal, as defined by Section 254.0362,
9-23     Election Code, as added by this Act; and
9-24                 (2)  the commission has determined that the computer
9-25     software has been sufficiently tested and demonstrated to be
9-26     reliable when used with a publicly accessible computer terminal.
9-27           (d)  If, under Subsection (b) or (c) of this section, a
 10-1    person is not required to file a report that complies with Section
 10-2    254.036(b), Election Code, as amended by this Act, the person shall
 10-3    either file a report that complies with Section 254.036(a),
 10-4    Election Code, or Section 254.036(b), Election Code, as amended by
 10-5    this Act.
 10-6          SECTION 7.  The importance of this legislation and the
 10-7    crowded condition of the calendars in both houses create an
 10-8    emergency and an imperative public necessity that the
 10-9    constitutional rule requiring bills to be read on three several
10-10    days in each house be suspended, and this rule is hereby suspended.